Thoroughly depressing, but the writing was on the wall. If there was ever any doubt that the Fed wouldn’t institute QE3, this puts that to rest.
Here’s one scenario of what happens next purloined from Jim Quinn at The Burning Platform:
“…The markets are in freefall. The ruling elite are trying to induce a panic among the masses. Bernanke’s Fed meets this week. The Wall Street Big Swinging Dicks want QE3. They need QE3. They gotta have their QE3. They are addicts for free money.
The MSM will work people into a frenzy this weekend over this downgrade. Asian markets on Sunday night will crash. The Dow will probably fall 500 points on Monday morning. The ignorant masses will cry for the government to do something. Save Us they will scream. Is this a setup by the ruling class to grab more power and more control of our lives? I’m not sure. Are the wheels coming off and we are approaching the endgame? I don’t know.
The economy is contracting at an increasing rate compared to last year. All the real experts predicted back in January that QE would not end. And what did Bernanke’s $600 billion in QE2 money printing get us?
- A revised first quarter 2011 stall-speed GDP number of 0.4 % and an anemic second quarter GDP of 1.3%
- An official unemployment figure between 9.1 and 9.2% that will not budge (Note: Official figures are based on reporting shenanigans that actually defined long-term discouraged workers out of existence back in 1994. The real unemployment figure is above 20% according to ShadowStats.)
- Friday’s 513 point carnage in the markets that wiped out all of the 2011 gains for the major averages
PIMCO’s Bill Gross, head of the world’s largest bond fund says QE3 is on the way. On CNBC he trashed the debt reduction deal as a paltry $1 trillion in cuts that are backloaded with nothing taking place in 2012. He predicts that the even slower economic growth will increase the deficit by far more than the debt reduction deal will decrease it.
And just for grins if, like me, you’re in a pissy mood this a.m….
image courtesy of williambanzai7